04-Nov-2010 8:53 AM

flydubai agrees financing for four B737-800NGs worth US$320m with Avolon

Direct News Source

03-Nov-2010 flydubai, Dubai's first low cost airline, today announces sale and leaseback agreements on four Boeing 737-800NG aircraft worth US$320m at list prices with aircraft leasing group Avolon.

In addition to recently announced deals with GECAS and BBAM to finance nine aircraft, this latest deal secures flydubai's needs through to December 2011.

Ghaith Al Ghaith, CEO of flydubai, said:

"We are delighted to be able to enter into this partnership with Avolon today. Like flydubai, Avolon is a young, ambitious, dynamic company and we look forward to a long and successful relationship with them."

"This deal for four Boeing 737-800NG aircraft comes just five weeks after our announcement of sale and leaseback agreements for nine aircraft with GECAS and BBAM and takes the total value of the financing we have secured during that period to more than US$1 billion. Our next 13 aircraft are now completely financed, which takes us through to December of next year."

"This is a further indication that the international financing community views flydubai and Dubai itself as a good investment for the future."

Since launch in May, 2010, Avolon has executed contracts and letters of intent for the purchase of over 50 aircraft. The Avolon fleet, comprises Airbus A320s, Boeing 737NGs and Airbus A330s, valued at in excess of US$2 billion.

John Higgins, Avolon President and Chief Commercial Officer, commented:

"We are delighted that flydubai has selected Avolon as a partner in its fleet development plans. A key element of Avolon's strategy is to identify airlines that are long-term "winners" and to back them in scale. Our team are uniquely experienced in structuring large and innovative sale and lease-back financings and we look forward to further developing our relationship with flydubai and our presence in the Gulf over the coming years."

flydubai began commercial flights on 1 June, 2009. Since then the airline has grown to a fleet of nine B737-800NG aircraft operating to 24 destinations within a five-hour flight radius of Dubai. Four more aircraft are due to be received before the end of this calendar year. These will be the new Boeing Sky Interior 737-800NG and will be fitted with the revolutionary new type of in-flight entertainment system from Lumexis that the airline announced earlier this year.